👉 Swipe to See: Nordic and Baltic Countries Lead in "Tax Competitiveness"

Key Takeaways

• According to the Tax Foundation, Estonia has the best tax code in the OECD for the 11th consecutive year due to: 
• A 20% corporate tax rate only applied to distributed profits
• A flat 20% individual income tax that doesn't apply to personal dividend income
• Property tax that applies only to land value
• A territorial tax system that exempts 100% of foreign profits

The Other Side of “Tax Competitiveness”

Tax Competitiveness as measured by the Tax Foundation prioritizes business mobility and investment flows over other policy goals like:

• Reducing inequality
• Funding robust public services
• Long-term fiscal sustainability
• Democratic choice about the size of government

Estonia's system works well for attracting capital and businesses, but may be sub-optimal for building a comprehensive welfare state or addressing inequality, which many would argue are equally important measures of a successful tax system.